The Nasdaq Composite hit a record high at 27,384.64 as growth stocks climbed, even as the Dow and the long end told a different story. Meanwhile, Wall Street grew more bullish on SpaceX.
Nasdaq Hits Record High as Growth Stocks Rally
The Nasdaq Composite climbed higher after posting a record high at 27,384.64 earlier in the session during Monday trading. The main trend remained up according to the daily swing chart, with a trade through 26,706.14 set to change the main trend to down. The minor trend turned higher following a move through the two-day top at 27,288.79, which confirmed 26,706.14 as the new higher main bottom.
The 50-day moving average continued to slope upward, providing price support and adding credibility to the uptrend. Market watchers noted that the move was driven by growth stocks rather than a broad-market breakout, pointing out that the Dow isn’t confirming the move.
Wall Street Sentiment on SpaceX
Wall Street sentiment on SpaceX turned increasingly positive.
Bond Yields and Global Economic Pressures
Global bond markets experienced shifts as investors assessed sovereign debt and energy costs. Torsten Slok pointed out that 84% of global fixed income now yields more than 3%, up from just 12% in January 2022. Slok noted that any agreement or government action lowering oil prices could ease upward pressure on interest rates at a time when yields remain elevated across nearly the entire global bond market.
BMO’s Ian Lyngen highlighted persistent concerns regarding sovereign debt, noting that government deficit spending will eventually lead to a reckoning for sovereign debt markets across France, the United States, Japan, and the United Kingdom. Meanwhile, benchmark yields on Italian government debt dropped 11 basis points to 4.52%, and French debt yields fell by 10 basis points to 4.76% as European bond prices rallied.
